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Craig & Diane's Life Plan
This recently married couple barely has time to plan dinners together, let alone all their hopes and dreams. Both working professionals, Craig left his unit (which he now rents out) when he married Diane to live in a leased house in a suburb they both love closer to their jobs. They are scoping the neighbourhood for a potential home purchase suitable for the family they plan to start within a few years. Their only drawback is that Craig’s employer may ask him to relocate to set up an interstate office –a commitment which could last two years. This has put a dampener on their house-hunting.
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Craig & Diane's Action Plan
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Craig and Diane spoke to a financial adviser to understand what effects a major mortgage might have on their lives should they live elsewhere. They quickly got a sense of financial impact should they have to rent interstate while leasing out their home. While Craig’s employer is expected to cover the rental expense, there were certain advantages to looking at other forms of salary adjustments to optimise the arrangement. Most importantly, the adviser illustrated some holes in their plans if they switched to one income should Diane leave work to have a child. With thorough debt-analysis, Craig and Diane recognised the need to have adequate Insurance covers –like Life Insurance, Trauma Insurance and Income Protection—to provide for one another should circumstance demand. They also received important insights into Super and Investment strategies to more aggressively build assets.
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